Under the mudarabah banking system, when an Islamic bank lends money to a business:

Under the mudarabah banking system, when an Islamic bank lends money to a business: 










A. it charges that business interest on the loan.

B. the business needs to pay back the loan with an additional markup.

C. it has to donate the interest received on the loan to a charitable trust.

D. it takes a share in the profits that are derived from the investment.














Answer: D


International Business

Learn More Multiple Choice Question :